Consumer Confidence at 2004 Levels – Does This Mean Green Grocery is Dead?
Not necessarily. Though consumer confidence is down, recessions are historically the time when emerging trends gain momentum – green is a fast growing trend.
But, if your business depends on retail distribution, now is the time to familiarize yourself with how the grocery channel operates in down markets…which you may not have been a part of until this time.
The effect at retail has more nuance than an upturn in staples sales, as people eat out less and turn to food stores more for their next meal components. Rattled consumers expressed their lowest confidence levels since the start of the Iraq war in 2003, and the lowest expectation levels since the oil embargo and Watergate of 1973, according to the Conference Board.
This means a focus on the consumer benefit for organic foods…not the term “organic” but the health benefit provided. Consumers may be more willing to spend the extra dollars to buy organic if they have the health benefit spelled out in front them at point of purchase.
Or perhaps, no certainly, this is the time to teach consumers how to stretch their menus. During tight times, providing recipes with which consumers may not be familiar is a great strategy. Coupons and selling a value message is paramount.
